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Using CRM to Simplify the Customer Onboarding Process for Banks

For banks, a combination of healthy CASA growth and smooth internal processes is essential for success. However, the competition has intensified to the point that banks want new customers to withdraw money from their existing accounts (with their competitors) and keep it in their savings account that offers 25-50bps more interest. This has led to snatching and stealing of customers to the extent that rates are more competitive and profitable than ever before for customers

Each bank has a different business model, yet the objectives of each remains the same - to attract new customers, to retain old customers and to enhance the loyalty of the existing ones. To achieve this, building a system that manages, monitors and leverages customer data effectively and facilitates informed decision making is mandatory. Sometimes all it takes is a little tweak of the internal model to achieve unprecedented success.

With the advent of social networking and global competition, banks are sensitized to the need for efficient onboarding of customers for new accounts and the dispersal of information/ welcome kits to new account holders. Streamlining the process to ensure compliance with internal timelines and ensuring optimized customer experience from scratch is critical to gain a strong foothold in a business landscape dotted with competitors.

Bank Account Opening Process

CRM software can be an effective tool in enhancing business models. Several renowned banks have witnessed amazingly successful CRM implementations. At every step,
the platforms assist the departments to achieve a smooth and effective model
that is aligned with the primary and secondary objectives of the organisation. A good example of CRM in banking is the CRMnext implementation at HDFC Bank, where over 30,000 users reap the benefits of optimized processes to manage day-to-day operations.

Let us have a look at how CRMs can help improve basic processes in a banking model:

Prospecting phase - Managing massive databases was never easier as CRM software help segregate data effectively. The tedious work of classifying leads, setting up appointments and organizing the background information of the prospective client base has been reduced significantly by these systems that eventually allows the marketing and sales teams to concentrate solely on their primary functions. These systems can also help filter data (from duplicate/incomplete details) that enhances the quality of the databases. With real time data and secure sharing options, sales and business development teams can coordinate better and the former’s meeting and follow up schedules are always up to date.

Approval phase - This phase involves a great deal of document hard copies that are tough to manage. Bank officials often struggle to keep all the documents safely preserved while a lot of scanned copies also do the rounds online. Organizing the data at this stage is a crucial part of stepping up the processing of the accounts. CRM solutions go a long way in sorting the issue with a simple user interface that instructs the user about the preservation, transfer, documentation, clearance, dispatch and attestations. A step by step breakdown of the procedures allows experienced employees and freshers to deal with documentation effectively and safely.

Finalization phase- As the account processing enters this phase, the documentation becomes more crucial. An automated system ensures that the processing of the documents and required subsequent actions such as physical verification/scrutiny take place within the time framework. Earlier, when the work of CRM solutions were done manually by bank employees, it was this phase of the processing that took the maximum amount of time and was also prone to the maximum errors. Thanks to these advanced systems, today, customers can expect loans, investments and other financial products to be activated within days of applying.

CRM solutions can be a useful tool in building effective onboarding strategies that are aligned with the marketing and sales plan of banks and other financial organisations. By incorporating assignment rules, escalations and customized alerts, managers can ensure their front end and fleet on street are performing at optimal levels. In addition, real-time customer information and efficient activity management can ensure a more efficient onboarding process with a far lower likelihood of customer churn.